KYAMBOGO UNIVERSITY

FACULTY OF ARTS AND SOCIAL SCIENCES

DEPARTMENT OF ECONOMICS AND STATISTICS

BACHELOR OF MICROFINANCE (MFD)

COURSE UNIT: MARKETING OF FINANCIAL SERVICES

COURSE CODE: AMF2101

YEAR: TWO SEMESTER: ONE

TASK: GROUP COURSEWORK

LECTURER: Ms. NAIGA JOSEPHINE

DATE OF SUBMISSION: 01st /MAY/2021

GROUP MEMBERS

No. NAME REG. NO SIGNATURE

1 OTTO VINCENT 19/U/MFD/18531/GV
2 NAMATA RITAH 19/U/MFD/267/GV
3 OKANE RICHARD 19/U/MFD/15292/PD
4 TURATSINZE ROGERS 19/U/MFD/18543/GV
5 TUMWIJUKE PRISCILLA 19/U/MFD/392/GV
6 MALISH ISAAC 19/U/MFD/18499/GV
7 OMARA AMOSE 19/U/MFD/18530/GV
8 ANENA SHARON ONGOM 19/U/MFD14941/PD
9 BATAL BOSCO 19/U/MFD/14990/PD
10 MUHWEZI DAVIS 19/U/MFD/15112/PD
QUESTIONS
1) Assuming you are establishing a SACCO in Kyambogo University, assesse the marketing
environment where you are going to establish the SACCO
 SACCOs is an abbreviation which stand for saving and credit cooperatives organization.
SACCO refer to the self- help, unique member driven and democratic cooperatives that is
governed, owned and managed by its member who shares in saving and loans in the same
community. SACCOs are registered under the Uganda statutes of 1991 and cooperative society
regulation of 1992 these bodies are under the Uganda association of microfinance institution in
Uganda (AMFIU).SACCOs plays an important roles in the socio-economic development of the
members and the community among these include easy access to financial services to the
community peoples, create employment opportunity.
Marketing in a simple term just refers to the management process responsible identifying,
anticipating and satisfying the customer requirement profitably. Marketing is all about getting
the right products or services to the customers at the right price, in the right place and at the right
time. The process of marketing is concern with the establishment and maintenance of mutually
satisfying exchange relationship.
Marketing environment refers to all internal and external factors which directly or indirectly
affect or influence the organization or the SACCOs. According to Philips Kotler, The SACCOs
marketing environment consist of the internal factors and forces, which affects the SACCOs
ability to develop and maintain successful transaction and relationship with the SACCOs target
customers. Internal factors are within the control of the organization or they are factor that the
organization have control over them. These internal factors may include strength, weakness and
competencies among others. On the other hand external factors are those forces that our SACCO
do not have control over them and these factor include technology, political, socio-economical,
Legal or government and ecological factors among other
In order to make our SACCOs, the organization must monitor not only the changing needs and
of the target market, but must also do monitoring of the changing marketing environment. So
doing or understanding the marketing environment our marketing team or marketers can adopt
their strategy to meet new market place challenges and opportunities.
Therefore Kyambogo University as an institutes for higher learning is composed of different
categories of the stake holder for instance students, administrative staff, non-administrative staff
and different service provider. This provides a greater business opportunity for the proper
operation of any financial institution like SACCOs and money lending within Kyambogo
University among others since they are the potential client to the different financial services of
the organization.
This therefore implies that before establishing our SACCOs in Kyambogo University, it is
important for us to first understand the different internal and external forces that we might come
across when starting the SACCO and during its operation in order to meet the needs of the
different potential customers. Microenvironment refers to the environment which is closely
linked to the SACCOs areas of operation that is to say Kyambogo University and would directly
affects the activities and operation of our Sacco. This microenvironment can be categorized as
supply side environment which includes; suppliers, marketing intermediaries and competitors
who offers raw materials or supply products. On the others hand demand side environment
include customer who consume products
As a SACCO, assessing the micro environment involves working at the following forces or
factors;
Suppliers; these are others business and individuals who will be providing our SACCO with
different supplies materials such as ICT equipment, stationaries and other services. These
therefore implies that assessing the marketing environment we need to put more effort on the
required in puts or materials to be used by our SACCO such these inputs will help in
establishing the supplies a scalability. This will help in reducing supply shortages and delay and
other events that can cost sales in the short run hence damaging consumer satisfaction which in
the long run damage the brand image of the institution
Customers; these are individual and organization that would be interested in the different
products and services of our SACCO. This would involves knowing who our potential client are,
their changing needs and wants, and how best to meet these changing needs of the potential
client profitably. Within Kyambogo University marketing environment, potential clients or
customer would be student community, the staff, the administrators, services providers for
example restaurants within Kyambogo University. These student would be in needs of tuition
loans at relatively lower interest rates, saving accounts or student account, salary loans for the
administrators and the staff.
Competitors; these are the already existing financial institution that were initially offering
both financial and non-financial services to the same target client or customers. This implies that
we have to study or assesse the competitor strength and weakness, their products and services,
the brand image that they have developed in the market or among the potential clients. Within
Kyambogo University the competitors that exist in this marketing environment includes
KYUSACCO, ATCOM financial service limited and Stanbic bank limited.
Intermediaries; these intermediaries are agent that would be used in order to create
awareness about the existence of the SACC, it products and services they are offering, promoting
and selling them to the targeted customers. Intermediaries helps to bridge the channel of
distribution by distributing these products and services o the SACCO to the final consumers.
Within Kyambogo University marketing environment, our major intermediaries would be the
microfinance student through their association of AMSKYU (association of microfinance student
if Kyambogo University) since they have some knowledge and skills concerning microfinances
services and how these institution operates. This would create awareness of the existence of the
SACCO, their financial and non-financial services that they are offering and the interest rate and
others charges. In the long run these will attracts more student to come and access the different
financial services from the SACCO.
Besides that there are also other factors that the organization don’t have control over them and
these are the external factors. These factors are referred to as macro factors in the marketing
initiatives and they includes the following;
 Economics factors: under these factors we would look at the influence of the economics
variables such as inflation rates, interest, incomes level of the student and staff of the Kyambogo
University and the level of economic activities within Kyambogo University and how these
variables would affect the level of demand for our products and services, our profit margin for
instance low level of income among the student and the staff will affect the level of saving in the
SACCO and this will call for adjustment in the interest rates on saving(increasing interest on
saving so as to attracts more client to save with the SACCO)
Legal factors; these are institution that set the basic rules for how SACCOs should be started,
managed and operated. Changes in the legal environment is cause as a result of change in the
political environment of the country. Under this factor, our SACCO should be aware of laws that
would affect its operation such as consumer protection acts that is to say how the consumer
deposit would be protected and how the consumer would be protected from exploitation by
meeting the minimum requirement or standard under the act or by abiding by these consumer
law.
Political factors; the marketing decision may be affected deeply by this factors in the sense
that it is the overall body that guide the opening and operation of the SACCOs and any other
financial institution. Political environment consist of the following key aspect; law that regulate
the operation of all financial institution, government agencies for instance tax authority and other
revenue authority among others. Political factors can be one of the less predictable element of
marketing environment that have to be taken with much consideration in order to monitor the
changes in the market. This is because political climate determine the level of risk that is
involves in establishing a SACCO, it also determine whether the government is going to allow us
to establish a SACCO within Kyambogo University. Hence affecting the marketing of the
product of our SACCO profoundly.
Technological factors; Today the level of technology is constantly changing day and night
and these therefore call for our SACCO to observe the necessary trend of change of technology
and such changes includes online banking, money transfer, mobile money banking and ATM
(automatic tele machine) and how they would affect marketing environment in term of research
and development, products distribution and regulation. This would enable our SACCO to cope
with the changing trends of technology so it can produce quality product and services that would
meet the needs of the consumers at a very low cost
Socio-cultural environment; under this factors our major emphasis would be on the pattern of
behaviour among the population. These factors are divided into two that is to say demographic
and factors and cultural factors. Under social factor the factor consider is demographic factors
we would be able put the following in consideration; I) Population around Kyambogo University
which could be roughly about 25000 and above covering the student, administrator of the
University, resident that stay in the neighbouring area
II) Location, age bracket, occupation; the SACCO would be in position to serve the entire
community of Kyambogo University, neighbouring areas such as Banda, Kireka, Mbuya and
Nakawa among others targeting people between the age of 18 and above. On the other hand
cultural factor look at the shared belief, attitudes and behaviour prevalent within the society in
which the SCCO operates and involves change in tastes and preference. Besides that social
responsibility also involves part of the ethical belief and its affect the way how consumer will
respond to the marketing initiatives.
Ecological factors or environment; this factors is concerned with the issues such as the way our
SACCO would interact with and affects the natural environment such as pollution concern likes
eyes pollution constant use of the ICT gadgets (computer)and environmental pollution through
electronic waste disposal among others.
After identifying the micro and macro factors affecting establishment of our SACCO, these
therefore call for a proper assessment of the marketing environment within Kyambogo
University and assessment involves the following stages;
Scanning; this involves continuous reviewing of all the factors identified at Kyambogo
University so that changes can be identified at an early stage and appropriate action can be taken
before such changes become of an adverse effects to our SACCO from meeting customer needs.
Monitoring; this is carried out after evidence are collected basing on the nature of emerging trend
and pattern so that such trends can give a clear illustration on what we can do.
Forecasting; this is the process of predicting the likely impact of these changes on our SACCO.
It concern with the speed, spot and intensity of these environmental changes on our SACCO.
Assessment; this is carried out to identify the impact of these changes on our SACCO and its
potential to provide products and services to clients or customers in the future. Conducting
assessment is done to analysed the expected change of given factors and its impacts on the
SACCO
Thus in conclusion all the marketing activities should be designed and implemented with the
aims of increasing welfare of the consumer alongside making the SACCO viable and sustainable.
 Reference
1) Kotler, Philip and Gray, Armstrong, (2008) “principle of marketing” prentice hall
2) Kotler, Philip, and Gray, Armstrong, and Y. Agnihotri, Prafulla and ul Haque, Eshan (2013)
“Principle of marketing-A south Asian perspective” prentice Hall
3) Sylvester, GS,(2014) “preliminary certificate in marketing” study text